THE INDIAN POWER SECTOR: FRAMEWORK, PERFORMANCE, POLICIES AND WAY FORWARD
- Credit Rating Agency in India
- Industry Report
- THE INDIAN POWER SECTOR: FRAMEWORK, PERFORMANCE, POLICIES AND WAY FORWARD
The power sector is the lifeline of any economy. It impacts all sectors of the economy and all persons. The Indian power sector is central to the country’s economic growth and structural transformation, as it underpins industrialization, rural development, digital services, and climate commitments. Over the last decade, India has seen rapid capacity additions, especially in renewables, major regulatory reforms, and a steady policy push to improve distribution finances and grid flexibility.
Yet persistent challenges remain- the challenges of stressed distribution companies (DISCOMs), coal-supply/quality issues, transmission bottlenecks for renewables, financing constraints, and the need for large-scale storage and demand-side management. Despite these headwinds, the Indian power sector is on a path of sustained growth and structural transformation. GDP growth rate, demographic dividend, increasing urbanization, and rising consumption are key driving factors.